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(Solved): After the central bank decreases the quantity of money, do people buy or sell bonds? At an in ...



After the central bank decreases the quantity of? money, do people buy or sell? bonds? At an interest rate of 2 percent a? year, people want to hold ? _______ money than the quantity? supplied, so they ? _______ bonds. A. ?less; buy B. ?more; sell C. ?less; sell D. ?more; buy Part 4 How does the price of a bond and its interest rate? change? The price of a bond? _______ and the interest rate? _______. A. ?falls; rises B. ?rises; rises C. ?falls; falls D. ?rises; falls



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